ChemFirst Inc. Announces Third Quarter and Nine Months Results.JACKSON Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. , Miss.--(BUSINESS WIRE)--Oct. 22, 1998--ChemFirst Inc. (NYSE NYSE See: New York Stock Exchange : CEM CEM contagious equine metritis. CEM selective medium chocolate agar made with Eugon agar and 5% horse blood; used to cultivate Taylorella equigenitalis. ) earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ended Sept. 30, 1998, were $5.5 million or 29 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share versus $7.2 million or 35 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. last year and $4.1 million or 21 cents per share prior quarter. Earnings from continuing operations for the nine months, including $5 million or 25 cents per share gain on the January January: see month. sale of Power Sources, Inc., were $19 million or 97 cents per share versus $23.3 million or $1.11 per share for the same period last year. The decrease from last year was primarily due to lower aniline aniline (ăn`əlĭn), C6H5NH2, colorless, oily, basic liquid organic compound; chemically, a primary aromatic amine whose molecule is formed by replacing one hydrogen atom of a benzene molecule with an amino production from the Pascagoula Pascagoula (păskəg  `lə), city (1990 pop. 25,899), seat of Jackson co., extreme SE Miss. , Miss., plant in the first half
and to weaker custom manufacturing demand. The third quarter improvement
versus second quarter was primarily due to higher aniline production
helped by the new Baytown, Texas Baytown is a city located along the Gulf Coast region in the U.S. state of Texas within the Houston–Sugar Land–Baytown metropolitan area. The city is mostly in Harris County with small portion in Chambers County, located along both State Highway 146 and , plant.Total sales increased slightly to $92 million for the quarter and $278 million year to date. Chemical sales increased 7 percent for the quarter over last year and 5 percent year to date. Net results for the quarter were a loss of $7.7 million or 40 cents per share, including a $13.2 million provision for loss on disposition and operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of the steel business, which has been classified as discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: in anticipation of a sale. Net earnings for the nine months were $6 million or 31 cents per share including a $13 million provision for steel. Last year, net earnings were $6.8 million or 33 cents per share for the quarter and $22.8 million or $1.09 per share year to date. Results last year included $203,000 and $2.4 million in equity earnings of former affiliates. Chemicals pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. were $10.4 million for the quarter versus $12.9 million same quarter last year and $9.1 million prior quarter. Results reflected lower prices for some specialty products due to market conditions and continuing development expenses for chemical mechanical planarization (CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information ) products for the semiconductor industry. The new Baytown Baytown, city (1990 pop. 63,850), Harris co., S Tex., at the head of Galveston Bay, on the Houston ship channel; inc. 1948 after the consolidation of Goose Creek, Pelly, and Baytown. aniline plant operated routinely although not at full capacity due to external constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . Pascagoula aniline operations were also routine except for a weather shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down at the end of the quarter. Operating profits year to date were $28.3 million, down from $38 million last year hurt by adverse markets for some custom manufacturing customers and lower prices for some specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. in addition to lower Pascagoula aniline production. The company's Pascagoula plant was hit by Hurricane Georges This article is about Atlantic hurricane of 1998. For other storms of the same name, see Hurricane Georges (disambiguation). Hurricane Georges (IPA: [ʒɔʒ] Sept. 28 and shut down for 18 days. It is now operating routinely. Hurricane related losses are covered by insurance subject to a $1 million deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). . Engineered Products and Services pretax operating profits were $793,000 for the quarter versus $919,000 last year and $1.4 million year to date versus $2.2 million last year. Current quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results include a $1.1 million gain from the sale of a small product line. Results excluding the gain were down primarily due to lower sales and to losses in some international markets. Steel -- "We have reached an understanding on the principal terms for the sale of our steel business to a strategic buyer," said J. Kelley Kelley may refer to any of the following: People
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals and to completion of a complementary transaction and financing arrangements by the prospective buyer." Capital expenditures were $8.6 million for the quarter and $32.4 million year to date. Most of the capital expenditures were for completion of the Baytown aniline plant. Dividend -- A quarterly cash dividend of 10 cents per share was declared payable Sept. 25, 1998, to stockholders of record at the close of business Sept. 10, 1998. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. -- During the quarter, 375,000 shares of ChemFirst stock were acquired. Year to date, 1,458,900 shares have been acquired at a cost of approximately $35 million. An additional $50 million repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program was announced in August. Unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. financial information is attached. Outlook -- "We expect 1999 to be better than 1998 helped by routine aniline production at Pascagoula and increased aniline production at Baytown, cost reductions and productivity improvements in all businesses, and the steel disposition," said Williams. "Longer term, we look for better results from custom manufacturing helped by a shift in product mix to include more pharmaceutical and electronic chemicals and better market conditions. We also anticipate growth in electronic chemicals from new CMP products and technologies, an increasing presence in Japan, and recovery of the semiconductor industry. The outlook will be affected by changes in general economic and market conditions." This release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on management assumptions and expectations. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. For additional information on risk factors that could affect actual results, please refer to the company's 1997 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . ChemFirst Inc. companies produce specialty chemicals and chemical intermediates for industry and agriculture, and provide engineered products and services to chemical and other industries. Additional information about the company is available on ChemFirst's website located at http://www.chemfirst.com. -0-
ChemFirst Inc. and Subsidiaries
Operating Results and Industry Segment Information
(Unaudited. In Thousands, Except Per Share Amounts)
3 Months ended 9 Months ended
Sept. 30 Sept. 30
1998 1997 1998 1997
---------------------------------- -------- -------- --------
Sales:
Chemicals $ 74,753 69,743 227,025 216,234
Engineered Products
and Services 16,836 18,099 51,080 55,689
----------------------------------------
Total Sales $ 91,589 87,842 278,105 271,923
========================================
Operating profit:
Chemicals $ 10,437 12,908 28,313 38,005
Engineered Products
and Services 793 919 1,411 2,220
----------------------------------------
11,230 13,827 29,724 40,225
Unallocated corporate
expenses (1,957) (3,080) (7,059) (8,351)
Interest income
(expense), net (271) 577 381 2,437
Other income
(expense), net (32) 208 8,165 296
----------------------------------------
8,970 11,532 31,211 34,607
Income tax expense 3,495 4,556 12,170 13,669
Equity in net
earnings of equity
investees - 203 - 2,368
----------------------------------------
Earnings from
continuing
operations 5,475 7,179 19,041 23,306
Loss from
discontinued
operations, net (1,212) (382) (1,071) (512)
Loss on disposal
of business, net (11,950) - (11,950) -
----------------------------------------
Net earnings
(loss) $ (7,687) 6,797 6,020 22,794
========================================
Earnings (loss) per
common share:
Earnings from
continuing
operations 0.29 0.35 0.98 1.14
Loss from
discontinued
operations, net
of tax benefit (0.07) (0.02) (0.06) (0.03)
Loss on disposal
of business, net
of tax benefit (0.63) - (0.61) -
----------------------------------------
Net earnings
(loss) $ (0.41) 0.33 0.31 1.11
========================================
Average shares
outstanding 18,926 20,354 19,435 20,459
Earnings (loss) per
common share,
assuming dilution
Earnings from
continuing
operations 0.29 0.35 0.97 1.11
Loss from
discontinued
operations, net
of tax benefit (0.06) (0.02) (0.05) (0.02)
Loss on disposal
of business, net
of tax benefit (0.63) - (0.61) -
----------------------------------------
Net earnings
(loss) $ (0.40) 0.33 0.31 1.09
========================================
Average shares
outstanding 19,088 20,839 19,695 20,943
Cash dividend
declared per share $ 0.100 0.100 0.300 0.300
Condensed Consolidated Balance Sheets
(Unaudited. In Thousands)
Sept. 30 Dec. 31 Sept. 30
1998 1997 1997
----------- ----------- -----------
Cash and cash
equivalents $ 11,712 7,766 13,094
Other current assets 160,360 151,959 132,324
Other assets 276,617 285,932 260,950
----------- ----------- -----------
Total assets $ 448,689 445,657 406,368
=========== =========== ===========
Current liabilities $ 45,070 81,667 53,526
Long-term debt 68,895 3,941 254
Other liabilities 44,294 38,352 37,359
Stockholders' equity 290,430 321,697 315,229
----------- ----------- -----------
Total liabilities &
stockholders'
equity $ 448,689 445,657 406,368
=========== =========== ===========
Condensed Consolidated Statements of Cash Flows
(Unaudited. In Thousands)
9 Months ended
Sept. 30
1998 1997
----------- -----------
Cash flows from operations:
Net earnings $ 6,020 22,794
Depreciation and
amortization 18,708 13,711
Other - including
loss on disposal
of business, net (10,673) (18,531)
----------- -----------
Net cash provided
by continuing
operations 14,055 17,974
Net cash (used in)
provided by
discontinued
operations (1,094) 1,476
----------- -----------
Net cash
provided by
operating
activities 12,961 19,450
----------- -----------
Cash flows from investing activities:
Capital expenditures (32,421) (63,948)
Other investing
activities 19,891 3,635
----------- -----------
Net cash used in
investing activities,
continuing operations (12,530) (60,313)
----------- -----------
Net cash used in
investing activities,
discontinued operations (745) (1,840)
----------- -----------
Net cash used in
investing
activities (13,275) (62,153)
----------- -----------
Cash flows from financing activities:
Net borrowings of
notes payable to
banks 45,000 5,000
Net repayments of debt (717) (16)
Other financing
activities (39,582) (16,969)
----------- -----------
Net cash provided by
(used in) financing
activities,
continuing operations 4,701 (11,985)
Net cash used in
financing activities,
discontinued
operations (441) (603)
----------- -----------
Net cash provided
by (used in)
financing
activities 4,260 (12,588)
----------- -----------
Net increase
(decrease) in
cash and cash
equivalents $ 3,946 (55,291)
=========== ===========
Cash and cash
equivalents at end of
period $ 11,712 13,094
=========== ===========
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